Which principle promote healthy relationship between workers and management?

Henri Fayol was a french management theorist who developed 14 principles of management. For his contribution in the field Of classical management theory, he is also known as the father of general management.
Fayol’s Principles of Management

Division of work Every employee should be assigned only one type of work.

• Authority and responsibility Authority and responsibility should bear a logical relation to each other.
• Discipline Discipline means obedience, application, good superiors’at all levels, clear and fair agreements and judicious application of penalties.
• Unity of command A subordinate should receive orders from one superior only at a given point of time.
•  Unity of direction One unit and one plan for the group of activities having the same objective.
• Subordination pf individual interest to general interest The interest of the organisation must prevail upon the personal interests of individuals.
• Remuneration of personnel The employees must be remunerated fairly for their services rendered to the concern.
•  Centralisation and decentralisation According to Fayol, in an organisation, there is a need to balance subordinate involvement through decentralisation with managers’ retention of final authority through centralisation.
• Scalar chain There should be a clear line of authority from top to bottom linking managers at all levels and this chain should be followed.
•  Order People and material must be in suitable places at appropriate time for maximum efficiency.
• Equity Sense of fairness and justice to all workers working in an organisation.
•  Stability of tenure There should be reasonable security of jobs, and personnel should get a reasonable time to show results.
•  Initiative The managers of an undertaking should encourage its subordinates to take initiative in thinking out and executing plans. Suggestion system should be installed, where good suggestion should be rewarded.
•  Esprit de corps It means unity is strength. Management should promote unity and harmony among employees.

Previous Years Examination Questions

1 Mark Questions

1. What is meant by Fayol’s principle of’esprit de corps’? (Delhi 2011)
Ans. Fayol’s principle of ‘esprit de corps’ suggests that management should promote a team spirit of unity and harmony among the employees.

2. Which principle of management implies that there should be ‘one head and one plan’ for a group of activities having the same objective? 
(All India 2010)
Ans. Principle of unity of direction implies that there should be ‘one head and one plan’ for a group of activities having the same objective.

3. Which principle of management states that an employee should receive orders from one superior only? (Delhi 2010c)
Ans. Unity of command states that an employee should receive orders from one superior only.

4. What does the principle of initiative indicate? (Delhi 2009)
Ans. Principle of initiative indicates that the management should encourage workers to think, make and execute plans within prescribed limits of authority.

5. Why did Fayol introduce the concept of ‘gang plank’ in the principle of ‘scalar Chain’?       (All India 2009)
Ans. Fayol introduced the concept of ‘gang plank’ in the principle of ‘scalar chain’ to overcome the problem of communication delay in urgent matters.

6. Which principle of management is violated, if a subordinate is asked to receive orders from two or more superiors? (HOTS; Delhi 2008C)

Ans. Principle of ‘unity of command’ is violated.
3 Marks Questions

7. Telco Ltd is manufacturing files and folders from the old clothes to discourage use of plastic files and folders. For this, they employ people from nearby villages where very less job opportunities are available. An employee, Harish, designed a plan for the cost reduction but it was not welcomed by the production manager. Another employee gave some suggestion for improvement in design, but it was also not appreciated by the production manager.  

• State the principle of management described in the above para.
• Identify any two values that the company wants to communicate to the society.  (Compartment 2014)

Ans. (i) Initiative Henry Fayol suggested that work should be encouraged to develop and carry out their plans for improvements. Initiative means taking the first step with self-motivation.
(ii) Values which the company wants to communicate to the society are:

• Creation of job opportunities.
• Concern for environment.

8. Voltech India Lid is manufacturing LED bulbs to save electricity and running under heavy losses. To revive from the losses, the management thought of shifting the unit to a backward area where labour is available at a low cost. The management also asked the workers to work overtime without any additional payment and promised to increase the wages of the workers after achieving its mission. Within a short period the company started earning profits because both the management and the workers honoured their commitments.   (Compartment 2014)

What are the Fayol 14 principles of management?

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Why is 14 principles of management important?